After an analysis of Lion/Bear, Inc., Karl O’Grady has concluded
that the firm will face financial difficulty within a year. The
stock is currently selling for $5 and O’Grady wants to sell it
short. His broker is willing to execute the transaction but only if
O’Grady puts up cash as collateral equal to the amount of the short
sale. If O’Grady does sell the stock short, what is the percentage
return he loses if the price of the stock rises to $9? Use a minus
sign to enter the amount as a negative value. Round your answer to
the nearest whole number. % What would be the percentage return if
the firm went bankrupt and folded? Round your answer to the nearest
whole number.